In a report released today, Martin Comtesse from Jefferies maintained a Hold rating on Friedrich Vorwerk Group SE (FDVWF – Research Report), with a price target of €30.00.
Martin Comtesse has given his Hold rating due to a combination of factors including the Friedrich Vorwerk Group SE’s projected sales growth and financial performance. The company has confirmed its preliminary figures for the fiscal year 2024 and anticipates sales between €540 million and €570 million for fiscal year 2025, representing an 8% to 14% year-over-year increase. This forecast is slightly above consensus expectations, which predicted a 6% growth.
Despite the strong order backlog and an improved EBITDA margin, which is expected to be between 16% and 17%, the Hold rating reflects a cautious stance. The anticipated EBITDA at the midpoint is €92 million, which is 11% higher than consensus expectations. Additionally, the company’s cash position has significantly improved, with cash and cash equivalents reaching €177 million by the end of fiscal year 2024. However, the rating suggests that while the company’s financial outlook is positive, the stock may not currently offer significant upside potential beyond current market expectations.